In early 2021, a struggling video game retailer, GameStop, ignited a financial firestorm. Fuelled by a social media-driven surge in retail investor activity, GameStop’s stock price skyrocketed. This was a direct challenge towards the Wall Street institutions and sparked a global conversation. Fast forward to 2024, GameStop has seen a slight resurgence and is back in the spotlight. Has the company undergone a true transformation, or is this just another cycle of hype for GameStop resurge? This article delves into the past and present state of GameStop and hopes to identify key lessons for retail investors to learn from.

1. Introduction of GameStop (GME)

GameStop is the world ‘s largest video game retailer worldwide with over 4000+ stores across US, Europe and Australia. Since the mid-2010s, the gaming landscape has witnessed a dramatic shift. The rise of digital downloads offered consumers a more convenient and often cheaper alternative. Instead of...